RBC Updates Model for HSBC Post-Q3 Results; Price Target Down

07:17 AM EDT, 10/28/2026 (MT Newswires) -- RBC Capital Markets revised its model for HSBC (HSBA.L), tweaking its earnings forecasts and price target for the UK-based banking group after the release of its third-quarter results. The research firm said Wednesday it lowered its full-year 2027 adjusted pretax profit estimate by 6%, mainly due to banking net interest income and net interest margins. RBC also now projects banking net interest income of $46.3 billion, $48.3 billion, and $48.9 billion for 2026 to 2028, respectively, against HSBC's guidance of at least $46 billion in 2026. For total shareholder returns, analysts model $75.3 billion across 2026 through 2028, comprising $47.3 billion in dividends and $28 billion in share buybacks. This forecast translates to an average yield of 8.9%. Against this backdrop, RBC trimmed its price target to 13.25 pounds sterling from 13.75 pounds, while maintaining the stock's sector perform rating.